System and methods for funding and binding auto loans

• US 8,671,051 B1
• Filed: 09/25/2007
• Issued: 03/11/2014
• Est. Priority Date: 09/25/2007
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Sandoval, Christopher A.
• Primary Examiner(s): Robinson, Kito R
• Application Number:
  US11/904,276
• Time in Patent Office: 2,359 Days
• Field of Search: 705/38, 705/35, 705/42
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A way to facilitate the use of funds from an automobile loan is provided. The vehicle identification number of the automobile the loan applicant wishes to purchase is used to activate the funds of the loan for use. The applicant may receive a loan card to be used in the transaction that may be initially inactive, i.e. unable to be used for a transaction, until the vehicle identification number is received by the financial institution that accepted the loan application. An applicant of the loan may also be provided information relating to an account established for the disbursement of the loan proceeds. The account may be initially inactive until the vehicle identification number of the automobile is received and the applicant may also receive additional information required to be transmitted to the financial institution in order to use the funds, including, without limitation, a security code.

Claims

1. A method for a financial institution to facilitate the purchase of an automobile by an applicant of a loan, comprising:

opening a financial account upon approval of an application for the loan by an applicant to purchase an automobile, the loan having an approved amount therefor, and financial account information being stored in a database;

depositing an amount of money into the financial account, based upon the approved amount of the loan;

issuing an inactive loan card to the applicant, wherein the loan card is associated with the financial account information stored in the database and is selectively activatable;

receiving a request at a computing device to activate the loan card, wherein the request comprises verifiable vehicle identification information for the automobile desired to be purchased by the applicant and verifiable information related to the applicant;

in response to receiving the verifiable vehicle identification information for the automobile desired to be purchased by the applicant, activating the loan card by the computing device upon verifying the vehicle identification information and verifying the applicant information is from an approved applicant;

receiving a notification from a credit card processing network that a merchant has commenced a transaction using the loan card at a certain amount of money; and

in response to receiving the notification from the credit card processing network;

disbursing the certain amount of money to a bank associated with the merchant;

closing the financial account; and

deactivating the loan card.

2. The method of claim 1, wherein the financial institution is a bank.

3. The method of claim 1, wherein the financial account is one of a debit account or a credit account.

4. The method of claim 1, wherein the amount of money deposited is an amount equivalent to a total amount of the loan.

5. The method of claim 1, further comprising:

sending a notification that the transaction is authorized to proceed.

6. The method of claim 5, further comprising determining that the amount of money deposited in the financial account is at least equal to the certain amount of money of the transaction.

7. A system for a financial institution to facilitate the purchase of an automobile by an applicant of a loan, the system comprising:

a processor coupled to a computer readable medium comprising computer-executable instructions tangibly embodied thereon, the instructions comprising;

at least one instruction that opens a financial account upon approval of an application for the loan by an applicant to purchase an automobile, the loan having an approved amount therefor;

at least one instruction for depositing an amount of money into the financial account, based upon the approved amount of the loan;

at least one instruction for issuing an inactive loan card to the applicant, wherein the loan card is associated with the financial account and is selectively activatable;

at least one instruction for receiving a request to activate the loan card, wherein the request comprises verifiable vehicle identification information for the automobile desired to be purchased by the applicant and verifiable information related to the applicant;

at least one instruction that, in response to receiving the verifiable vehicle identification information for the automobile desired to be purchased by the applicant, activates the loan card upon verifying the vehicle identification information and verifying the applicant information is from an approved applicant; and

at least one instruction for receiving a notification from a credit card processing network that a merchant has commenced a transaction using the loan card at a certain amount of money; and

in response to receiving the notification from the credit card processing network;

disburse the certain amount of money to a bank associated with the merchant;

close the financial account; and

deactivate the loan card.

8. The system of claim 7, wherein the financial institution is a bank.

9. The system of claim 7, wherein the financial account is one of a debit account or a credit account.

10. The system of claim 7, wherein the amount of money deposited is an amount equivalent to a total amount of the loan.

11. The system of claim 7, further comprising at least one instruction that:

sends a notification that the transaction is authorized to proceed.

12. The system of claim 11, further comprising at least one instruction that determines that the amount of money deposited in the financial account is at least equal to the certain amount of money of the transaction.

13. A computer-readable medium comprising computer-executable instructions tangibly embodied thereon for a financial institution to facilitate the purchase of an automobile by an applicant of a loan, the computer-readable instructions comprising instructions to:

open a financial account upon approval of an application for the loan by an applicant to purchase an automobile, the loan having an approved amount therefor;

deposit an amount of money into the financial account, based upon the approval amount of the loan;

issue an inactive loan card to the applicant, wherein the loan card is associated with the financial account and is selectively activatable;

receive a request to activate the loan card, wherein the request comprises verifiable vehicle identification information for the automobile desired to be purchased by the applicant and verifiable information related to the applicant;

in response to receiving the verifiable vehicle identification information for the automobile desired to be purchased by the applicant, activate the loan card upon verifying the authenticity of the vehicle identification information and verifying the applicant information is from an approved applicant;

receive a notification from a credit card processing network that a merchant has commenced a transaction using the loan card at a certain amount of money; and

in response to receiving the notification from the credit card processing network;

disbursing the certain amount of money to a bank associated with the merchant;

closing the financial account; and

deactivating the loan card.

14. The computer-readable medium of claim 13, wherein the financial institution is a bank.

15. The computer-readable medium of claim 13, wherein the financial account is one of a debit account or a credit account.

16. The computer-readable medium of claim 13, wherein the amount of money deposited is an amount equivalent to a total amount of the loan.

17. The computer-readable medium of claim 13, further comprising instructions to:

send a notification that the transaction is authorized to proceed.

18. The computer-readable medium of claim 17, further comprising instructions to determine that the amount of money deposited in the financial account is at least equal to the certain amount of money of the transaction.